We have been utilising this Microsoft data migration approach document for opening lease balance migration

https://community.dynamics.com/blogs/post/?postid=df76953f-bb2c-405a-ad21-cabcf82d742d

It is not possible to use the historical lease transactions to arrive at the lease balance, so we are utilising "option 2" from one of the Microsoft approach documents to bring the lease in at a "point in time".

We utilise a 4-4-5 financial calendar and are linking finance leases to fixed assets. This means that the fixed assets can depreciate on a weekly financial calendar to calculate 4-4-5 correctly and the monthly lease postings can occur in the lease module.

Because of 4-4-5, the cutover date at go-live will not always be a month end, it will be a period end.

Example:

Period end date of 27/10/2023.

Using this as an example, we are populating on the lease the lease commencement date of 27/10/2023 and according to the article.

In line with the article, we need to create a payment schedule line with zero amount to cover the period between the cutover date, and the date or next payment.

However, in doing so, we are encountering errors. Some leases have a quarterly compounding interval and quarterly payments. 

When setting up the payment schedule, we are getting error messages relating to the payment frequency of the payment schedule line must be quarterly if the compounding interval is quarterly.

Example:

Lease commencement date 27/10/2023

Next actual payment date 29/12/2023

So we are entering the below in the payment schedule:

Lease commencement date 27/10/2023

Payment schedule line 1 = 27/10/2023 for 2 months at zero amount with Quarterly payment frequency

Payment schedule line 2 = 27/12/2023 for 2 days at zero amount with quarterly payment frequency. 

Payment schedule line 3 = 29/12/2023 for 16 months at the payment amount with quarterly payment frequency.

This then gives an error saying: For period interval Days, payment frequency must be Monthly

When we then set the payment frequency to be monthly, we encounter another error message when trying to create the payment schedule.

Payment frequency should not be more frequent than the compounding interval. 

It does not seem possible to setup the lease to accommodate for quarters where there is a timing difference between the cutover date and the next payment date.